Azerbaijan Tax Calculator (2026)
Income tax rates and take-home pay for Azerbaijan
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Azerbaijan Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Non-taxable threshold (up to AZN 8,000 monthly) | AZN 0 - AZN 96,000 | 0.0% |
| Taxable income above AZN 8,000 monthly | AZN 96,000+ | 14.0% |
Social Security Contribution
| Bracket | Income Range | Rate |
|---|---|---|
| Up to AZN 200 monthly | AZN 0 - AZN 2,400 | 3.0% |
| Above AZN 200 monthly (plus AZN 6 base) | AZN 2,400+ | 10.0% |
Unemployment Insurance Contribution
| Bracket | Income Range | Rate |
|---|---|---|
| Unemployment insurance | AZN 0+ | 0.5% |
Mandatory Medical Insurance
| Bracket | Income Range | Rate |
|---|---|---|
| Up to AZN 8,000 monthly | AZN 0 - AZN 96,000 | 2.0% |
| Above AZN 8,000 monthly (plus AZN 160 base) | AZN 96,000+ | 0.5% |
Key Facts
Tax Year
2025
Currency
AZN
Top Rate
14.0%
Brackets
2 brackets
Tax-Free Threshold
AZN 96,000
Social Contributions
3 items
Assumptions
- · Model assumes employee in non-oil-gas and non-government sector, within the seven-year grace period (from 1 January 2019).
- · Personal income tax: 0% on monthly income up to AZN 8,000; 14% on amount exceeding AZN 8,000.
- · Social security contributions: tiered structure with 3% up to AZN 200 monthly, then AZN 6 + 10% above AZN 200.
- · Unemployment insurance: 0.5% employee contribution on gross monthly salary.
- · Mandatory medical insurance: 2% up to AZN 8,000 monthly, then AZN 160 + 0.5% above AZN 8,000.
- · All contributions are calculated on gross income and are deductible from taxable income.
- · Standard rates applicable to oil/gas and government sectors after the seven-year period are not modeled.
- · Tax is calculated on a monthly basis and aggregated annually.
- · Non-resident taxation rules are excluded from this model.
Frequently asked questions
How much income tax do I pay in Azerbaijan?
Azerbaijan has a progressive two-bracket system: you pay 0% on monthly income up to AZN 8,000, and 14% on any amount above that threshold. This means if you earn AZN 10,000 per month, you'd only pay tax on the AZN 2,000 above the threshold, resulting in AZN 280 in income tax.
What social contributions do I need to pay as an employee in Azerbaijan?
As an employee, you contribute to three social programs: social security (3% up to AZN 200 monthly, then AZN 6 plus 10% above that), unemployment insurance (0.5% on your gross salary), and mandatory medical insurance (2% up to AZN 8,000 monthly, then AZN 160 plus 0.5% above that). All three contributions are deductible from your taxable income, which lowers your overall tax burden.
What's the take-home pay from a typical salary in Azerbaijan?
Your take-home pay depends on your gross salary after deducting social contributions and income tax. For example, if you earn AZN 10,000 monthly, your social contributions total around AZN 455, reducing your taxable income to AZN 9,545, on which you'd owe AZN 280 in tax, leaving approximately AZN 9,265 take-home. Use our calculator above to see your exact take-home based on your specific salary.
Do the 0% tax rates apply to everyone working in Azerbaijan?
The 0% tax rate on income up to AZN 8,000 monthly applies specifically to employees in non-oil-gas and non-government sectors who are within the seven-year grace period starting from January 1, 2019. After this grace period expires or if you work in oil, gas, or government sectors, standard rates apply, so rates may differ depending on your employment sector and when you started work.
Are there regional or state income taxes in Azerbaijan?
Azerbaijan does not have regional or state income taxes; the tax system is uniform across the country. The rates shown in our calculator apply nationally to all eligible employees, regardless of which city or region you work in.
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